Slide 1: January - March 2006 Conference Call
Linde Group January - March 2006 Conference Call April 26, 2006 Dr Peter Diesch, CFO
Slide 2: Contents
Linde Group Contents 04 | Linde Group 09 | Gas & Engineering 11 | Linde Gas 19 | Linde Engineering 22 | Material Handling 2
Slide 3: Disclaimer
Linde Group Disclaimer This investor presentation has been prepared independently by Linde AG (“Linde”). The presentation contains statements which address such key issues as Linde’s growth strategy, future financial results, market positions, and product development. Such statements should be caref
Slide 4: Adoption of IFRIC 4 accounting policy change
Linde Group Linde AG adopted the mandatory IFRIC 4 „Determining whether an arrangement contains a lease“ for the first time in January 1st, 2006. Due to the respectively required change in accounting policy, the comparative figures have been restated („restated“). 4
Slide 5: Impact of changes in accounting policy
Linde Group Impact of changes in accounting policy January to Group income statement March Year in € million 2005 2005 Net income after minority interests - as reported 85 501 Previously unrecognized actuarial gains/losses in relation to the measurement of pension obligations (IAS 19) 2 - Adjustment
Slide 6: Key Facts
Linde Group Key Facts — Strong Q1 figures with double digit growth in sales and EBIT — Robust market growth and margin increases in all segments — Operating Cash Flow increased by € 77 million to € 214 million — EPS of €1.12 (2005: €0.75), up 49.3% — Outlook for FY 2006 unchanged: Increase in sales
Slide 7: Income Statement
Linde Group Income Statement — Sales increase 14.0% to €2,415 million — EBIT up by 36.4% to €225 million In € million Q1 05 Q1 06 ∆ Sales 2,118 2,415 14.0% EBITDA 350 417 19.1% EBIT 165 225 36.4% Financial result -25 -17 32.0% EBT 140 208 48.6% Net income 89 134 50.6% 7
Slide 8: Key Financials
Linde Group Key Financials In € million Q1 05 Q1 06 Operating cash flow 137 214 Capex (excl. financial assets) 152 163 Net interest -24 -18 EBITDA / Net interest 14.5 23.2 Net debt* 2,005 1,524 Gearing ** 49 33 * Financial debt – cash & cash equivalents and securities (excl. restricted cash) ** Net
Slide 9: Gas & Engineering
Linde Group Gas & Engineering
Slide 10: Gas & Engineering
Linde Group Gas & Engineering — Sales increase 12.1% to €1,494 million — EBIT up by 24.9% to €211 million In € million Q1 05 Q1 06 ∆ Sales 1,333 1,494 12.1% EBITDA 268 315 17.5% Margin 20.1% 21.1% EBIT 169 211 24.9% Margin 12.7% 14.1% EBT 154 200 29.9% 10
Slide 11: Linde Gas
Linde Group Linde Gas — Sales gain 16.1% to €1,198 million — EBIT increases by 20.0% to €192 million — EBIT margin up 0,5% year over year In € million Q1 05 Q1 06 ∆ Sales 1,032 1,198 16.1% EBITDA 257 294 14.4% Margin 24.9% 24.5% EBIT 160 192 20.0% Margin 15.5% 16.0% EBT 144 179 24.3% 11
Slide 12: Linde Gas - Sales bridge Q1 2006: underlying growth of 11.7%
Linde Group Linde Gas - Sales bridge Q1 2006: underlying growth of 11.7% in Mio. € +16,1% +16,1% +11,7% +3,5% +1,1% 1.198 -0,2% 1.032 Q1 2005 Currency Consolidation Natural Gas Volume/Price Q1 2006 12
Slide 13: Linde Gas – Regional Sales
Linde Group Linde Gas – Regional Sales — Strong growth in all regions, acceleration in Western Europe — Asia/Pacific and Eastern Europe again leading growth regions In € million Q1 05 Q1 06 ∆ ∆ excl. currency Germany 221 245 10.9% 10.9% Europe excl. Germany 505 564 11.7% 11.3% North America 200 242
Slide 14: Linde Gas – Product Segment Sales
Linde Group Linde Gas – Product Segment Sales — Strong sales growth across all product segments — On-site business going from strength to strength — Another good quarter for bulk and cylinder segments In € million Q1 05 Q1 06 ∆* ∆* excl. currency Bulk 283 326 15.2% 11.8% Cylinder 392 434 10.7% 7.6%
Slide 15: Linde Gas - Healthcare Sales
Linde Group Linde Gas - Healthcare Sales increased by 12.4% (+7.4% excl. currency) In € million Q1 06 Q1 ∆ Q1 ∆ excl. currency Institutional 110 9.0% 4.0% Homecare 48 12.0% 11.0% INO 33 22.0% 13.0% Healthcare 191 12.4% 7.4% 15
Slide 16: Linde Gas – Thriving in a solidly growing market
Linde Group Linde Gas – Thriving in a solidly growing market — Growth momentum in the gas industry remains strong — Linde Gas underlying sales growth of 11.7% relies on solid fundamentals — Growth regions Eastern Europe and Asia deliver ongoing strong figures — Western Europe showing accelerating mo
Slide 17: Linde Gas Outlook for FY 2006
Linde Group Linde Gas Outlook for FY 2006 unchanged: — Increase in sales and EBIT 17
Slide 18: Linde Engineering: ongoing strong business environment
Linde Group Linde Engineering: ongoing strong business environment — Quarterly sales of €316m slightly below last year´s high level — EBIT strongly up by 12.5% to €18m — Taking profit of strong industry background In € million Q1 05 Q1 06 ∆ Sales 357 316 -11.5% EBITDA 20 22 10.0% Margin 5.6% 7.0% EB
Slide 19: Linde Engineering – Order intake and backlog
Linde Group Linde Engineering – ongoing strong business environment - Order intake increased another 8.0% to €502m - Q1 order intake by segment: Others Olefins 14% 9% Natural Gas 12% Syngas 24% Air Separation 41% Order backlog standing at EUR 3,477 bn (+64.8%) 19
Slide 20: Linde Engineering Outlook for FY 2006
Linde Group Linde Engineering Positive trends in all technology segments: — Air Separation: Booming demand from emerging economies — Olefins: build-up of capacity in Middle East, Russia and Asia — Syngas: clean energy impact and strengthening momentum in emerging markets — Natural Gas: break-through
Slide 21: Material Handling
Linde Group Material Handling
Slide 22: Material Handling
Linde Group Material Handling — Sales gain 19.6% to €922 million — EBIT leaps by 80.8% to €47 million — 1.7% increase in EBIT margin to 5.1% In € million Q1 05 Q1 06 ∆ Sales 771 922 19.6% EBITDA 106 128 20.8% Margin 13.7% 13.9% EBIT 26 47 80.8% Margin 3.4% 5.1% EBT 18 39 116.7% 22
Slide 23: Material Handling – Q1 2006 market growth (order intake)
Linde Group Material Handling – Q1 2006 market growth (order intake) vs Q1 2005 Counterbalance Trucks Warehouse Trucks 60% 53% 50% 42% 40% 30% 24% 20% 17% 13% 15% 16% 15% 12% 10% 6% 7% 5% 2% 0% Europe Eastern N. America S. America Asia Others World -10% Europe -20% -16% Total 15% 46% 6% 19% 7% 7% 10
Slide 24: Material Handling: Good progress in a supporting market
Linde Group Material Handling: Good progress in a supporting market — Markets showing robust and widespread growth — Asia and Eastern Europe have structural need for additional fleet capacities — Western European markets show stronger than expected first quarter — Expect ongoing robust growth in 200
Slide 25: Material Handling Outlook for FY 2006
Linde Group Material Handling Outlook for FY 2006 unchanged: — Increase in sales and significant improvement of operating profit (EBIT) 25
Slide 26: Investor Relations Contacts
Linde Group Investor Relations Contacts Thomas Eisenlohr, Head of Investor Relations Tel: +49 611 770 610 E-mail: thomas.eisenlohr@linde.de Robert Schneider Tel: +49 611 770 270 E-mail: robert.schneider@linde.de Jo Raja Tel: +49 611 770 128 E-mail: jo.raja@linde.de 26